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Cross-Border payments as implemented are fiendishly complicated due to the FX component as well as crossing jurisdictions and their differing KYC requirements. Add to this, the fact of sending money to people who may not have bank accounts. The intermediaries squeeze transaction fees at every step, from FX rates that embed a high cost to actual transaction fees. Delays add to the transaction cost and benefit the intermediaries.
Cross-border payments are heavily used by the global south for remittances (i.e. money sent by workers to family and friends back home). All direct trade and the opacity of prices for small and medium enterprises and small scale farmers involves the extraction of rents by a host of intermediaries. Some of this can be handled by direct peer to peer selling set free by cross-border payments in sovereign currencies aided by a relatively frictionless and user friendly system.
Daniel presents several experiments that use Hyperledger technology (among others) to implement cross-border payments, from wholesale to retail. BIS has been leading several of these efforts.
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